A few days ago a little bombshell dropped through my letterbox from the bank informing me thay my savings account had ‘matured’ and they were switching it to a new account. This wonderful new vessel for my life savings would pay the fabulous interest rate of 0.1%. One tenth of one percent per year.
After hunting around for a decent savings account the best I could come up with was around 2.4% but for that I’d have to lock away the money for 5 years. Instead, I’ve decided to invest in the stock market and see if I can beat that savings account rate.
Mind you, when I say “invest in the stock market” I’m doing it in the most simple and passive way possible. I’ve opened a stocks and shares ISA and will be investing £50 a month into the Vanguard Lifestrategy 80 fund. And to see how it goes I’m going to compare its performance against a notional £50 monthly deposit into a high interest fixed rate savings account.
I’ll post a little update on how my investment is doing every few months.